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Appeals Court Rules in Favor of Bed Bath & Beyond

On Sept. 21, 2017, a New Jersey appeals court ruled in favor of Bed Bath & Beyond (BBB) in its case against the state of New Jersey. BBB sought a refund for the value of unclaimed gift certificates it had escheated to the state. In 2015, the New Jersey Treasury Department’s Unclaimed Property Administration denied the claim.

The appeals court reversed the denial. In part, the court specified that the property did not need to be remitted because the gift certificates were “stored value cards” issued before the state’s unclaimed property statute included that property type. In addition, the value of certificates issued after July 2010 were escheated before the conclusion of the five year dormancy period, and, thus, the funds were remitted prematurely.